As GM’s June 1 deadline winds down, the struggling automaker borrowed another $4 billion from the U.S. Treasury and won a cost-cutting deal from the Canadian Auto Workers (CAW) and United Auto Workers (UAW). However, GM still faces a huge showdown with bondholders, which will most likely drive the automaker towards bankruptcy at the end of the month.
With the new $4 billion borrowed yesterday, the Obama administration has loaned GM a total of $19.4 billion to stay afloat. GM said that it expects that number to rise to $27 billion after June 1.
President Barack Obama said in an interview released today that he is very “confident” that GM would survive after restructuring. Obama did not mention whether GM would be filing for bankruptcy to complete it’s restructuring.
“Ultimately, I think that GM is going to be a strong company and we are going to be pulling out as soon as the economy recovers and they’ve completed their restructuring,” Obama said.
He said that he wanted the government to get out of the auto business as soon as possible.
– By: Omar Rana